Is new truck pricing really that out of control?

A fan recently had a chance to drive the new 2023 GMC Sierra Denali Ultimate and GMC Sierra AT4X, and he was blown away by the trucks — and the new truck pricing.

These trucks were part of an event put on by GMC to take lucky participants fishing as well as getting them behind the wheel of the new trucks.

Here is the message we got from Dan R.:

Just had the privilege to go on a fishing trip sponsored in part by GMC. They signed over two 1500s, a Denali Ultimate with a 3.0 Diesel and an AT4X with the 6.2 V8.

What an amazing pair of trucks! There was absolutely no complaint dealing with ride, comfort, storage space, use ability or comfort (it had to be said twice) for the four days we had them.

Ok, one complaint … $83k for either configuration. I liked them but that is an incredibly naïve price level. There may be sales now but if the market swats them, are we looking at another 2008 government bailout?

I just can’t see paying that much. The companies (and consumer) seem to be moving away from a truck and more into a status symbol. But if the sales are there, guess they can charge it. Do you see prices on new / used softening at all in ‘23?

Are truck prices leading us into a recession?

This question comes up all the time online and, frankly, in my driveway.

My neighbors often stop by when I have a new truck — especially when I have a top-trim truck from any automaker. They hop in the truck, see all the new features and the upgraded materials, then I tell them about the engine performance, fuel economy and, with a pause, the price. The conversation always changes on a dime from how much they like the new truck and want it to who the hell can afford these trucks!

Here’s my answer to them and Dan R.:

Luxury trucks only account for a small percentage of overall sales. For example, GMC sold 225k trucks last year and, according to Duncan Aldred, Global Vice President of Buick, GMC and GMC Hummer EV, these models make up just single-digit percentages of overall trucks sold right now. But he sees them growing into a double-digit percentage as consumer desire for them grows.

The bulk of the sales for most truck brands is commercial and lower trims that have a price tens of thousands of dollars less than the top end. For example, the GMC Sierra PRO starts at $37,200. That’s nearly $50k less than what you get in the top trims.

I don’t see prices of new and used trucks softening. I see automakers adding more features to make more profit, and I see the Average Joe trucks (low to mid-grade trims) keep selling at about the same price with inflation factored in.

I have one more thing for you to keep in mind: Looking at pricing in 2008, the base SLT started at $32,000, and the Denali was $50,000. Using an online inflation calculator, the 2008 base SLT would run you $44,984 in today’s money — which is more than today’s base price noted above. The Denali would be $69,207. The base price for the Denali today? $68,040. In both instances, today’s trucks cost less than their 2008 counterparts, and today’s trucks are night and day different in terms of technology, features and material qualities on the interior. And all that leaves room for the new top-tier trim: Denali Ultimate, which takes us up past $80k. To be clear, those trucks are not the volume seller, as probably less than 1,000 people will opt for this specific trim — though we’ll probably see closer to 10k or 11k people buying the regular Denali models.

The bottom line

Is new truck pricing getting out of control? Yes and no. Yes, if all you shop for is the top-trim trucks. Automakers haven’t really found a ceiling on pricing for those models yet. The answer is no if you shop around for the Average Joe or lower-trim truck. When you factor inflation, you are really getting a lot more truck than you used to. However, that doesn’t take away from the feeling of FOMO (fear of missing out) you get when you compare your base level truck to the high trim. Dang those automakers for building such a lust-worthy luxury truck!